Hong Kong is the frontrunner in the financial services, trade and logistics, as well as culture, sports and tourism sectors among the 11 cities of the Guangdong-Hong Kong-Macao Greater Bay Area, according to a survey released on Tuesday. In addition, the city’s innovation and technology sector is showing promising growth, while the manufacturing, construction and real estate industries are grappling with headwinds.
The Greater Bay Area Industry Development Index 2024, a joint effort by think tank Our Hong Kong Foundation and Dah Sing Bank, revealed that Hong Kong’s financial services sector scored 82.6 out of 100 points. This can be attributed to its highly internationalized market, a well-developed talent pool, and supportive policies that connect the city with both international and Chinese mainland markets. Shenzhen and Guangzhou ranked second and third.
In the trade and logistics sector, Hong Kong, Guangzhou, and Shenzhen took the top three spots as the international aviation hub, domestic maritime trade center, and international shipping powerhouse, respectively.
READ MORE: GBA will provide much-needed growth impetus for HK
The think tank attributed Hong Kong’s performance in the culture, sports and tourism industry to its rich cultural resources, the sector’s contribution to the economy, and government support.
Kenny Shui, vice-president of Our Hong Kong Foundation, said that Hong Kong is a cultural exchange hub linking East and West, which is evidenced by its thriving auction market. The number of lots and their values are comparable to those in New York and London, he said.
“Hong Kong’s strengths, particularly its international connectivity and talent pool, are not easily replicated by other cities in the region,” said Pascal Siu, senior researcher of the organization.
In the remaining three surveyed industries, Shenzhen ranked first in the innovation and technology sector because of its significant investment in research and development as well as a comprehensive industrial chain. The city’s R&D expenditure accounted for 5.8 percent of its gross domestic product in 2023, second only to Beijing. Nearly 95 percent of this investment came from corporates.
Guangzhou holds second spot, leveraging its research infrastructure, which includes a national laboratory, three provincial labs, and 18 Guangdong-Hong Kong-Macao joint facilities. With 84 higher education institutions — second only to Beijing — Guangzhou produced 90 percent of the province’s doctoral graduates and 80 percent of its master’s graduates.
Hong Kong is a latecomer to the sector, but recent policy backing helped it secure third place in the rankings. The survey underscored the strategic importance of innovation and technology for Hong Kong’s future. It projected that the number of unicorns — startups valued at over $1 billion — could increase to 30 by 2032 in Hong Kong.
READ MORE: GBA cities team launches drive to attract global talents
Hong Kong ranked eighth in manufacturing and third in the construction and real estate sector. Shenzhen and Guangzhou secured the top places respectively. The study suggests that Hong Kong should look for opportunities amid the challenges facing these industries. For instance, with the start of the interest-rate-cut cycle and the economic stimulus measures introduced by the central government, Hong Kong’s real estate market could be stabilized, the survey indicated.
“It is important for Hong Kong to pick up the pace in finding new development opportunities amid challenges,” said Jane Lee, president of Our Hong Kong Foundation, adding that “strengthening collaboration with other cities in the Greater Bay Area across various sectors could help Hong Kong drive productive changes in both industry and policy.”
The survey, which covered more than 3,000 companies in the Greater Bay Area, found that these firms are optimistic about their industry outlook. Confidence is highest in the culture, sports and tourism sector, which recorded a confidence index of 58, well above the overall level of 52.2.
Contact the writer at irisli@chinadailyhk.com
